Just few weeks back, two Singapore Condos (Privatised HUDC estate), Rio Casa and Eunosville were sold via collective sales. And now, another two new private HUDC estates are up in the market and determined to sell! The Tampines Court which comprises of 560 residential units is expected to be launched in the early July. On the other hand, there is the Florence Regency in Hougang with 336 units that is already in the initial sales process.
Tampines Court which sits along Tampines Street II covers a vast land size of 702,000 sq ft and residents are expecting to earn at least $960 million. For all collective sales, before the sales tender can be called, the consent of 80% of the owners is required. Based on the Facebook page of the Tampines Court collective sales, more than 81% of the owners are ready for the sale. This information is not official and finalized yet because the residents have the 5 days cooling time in which they can rescind the agreement.
Below are some of the brief details of Tampines Court are:
- The Tampines Court was established in 1980 and it became private in 2002.
- There are 14 blocks, 128 apartments and 432 maisonettes in the area
- Its first bid for en bloc sales of $405 million was held in 2008 and it was rejected by the Strata Titles Board (STB).
- In 2011 another attempt was made, however this time, it did the achieve at least 80% consent from the residents
The head of research and consultancy Wong Xian Yang is expecting more HUDCs to begin the sale process of en bloc because it has been showing successful results. Last month Rio Casa was sold for $575 million and the Eunosville was sold for $765 million. Both developments had been sold at a higher price than the owners were expecting. When the asking price of an en bloc sales get drastically high, developers might lose their interest to invest in the collective sales.
HUDCs began in the 70s and since then 18 developments had been constructed. All the projects were privatised and out of the 18 projects, 9 of them underwent successful collective sales. These include the Shunfu Ville Estate.
The fact that HUDCs are usually situated in a mature estate appeal to private developers. The best feature is that the projects have a huge land size and with the right unit size and layouts, more units can be yielded. However, when the land plots are too large, some bidders might want to avoid them too as they have to develop and sell the units in a limited time otherwise they will have to face hefty stamp duty and extension charges.
http://www.straitstimes.com/business/property/2-more-hudc-estates-aim-to-sell-en-bloc
The link above will provide you more info on the Tampines Court enbloc.
The Shunfu Condo will soon be released for sales. Contact us to receive latest updates on this upcoming new launch.
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